A corporation has a taxable income of $2,564,306. At this income level, the federal income rate is 48%, the state tax rate is 22%, and the local tax rate is 12%. If each tax rate is applied to the the total taxable income, the company would have to pay $2,564,306 0.48 in federal taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in federal taxes if the customary deductions are taken into consideration?
A corporation has a taxable income of $2,564,306. At this income level, the federal income rate is 48%, the state tax rate is 22%, and the local tax rate is 12%. If each tax rate is applied to the the total taxable income, the company would have to pay $2,564,306 0.48 in federal taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in federal taxes if the customary deductions are taken into consideration?
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 14MCQ
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Transcribed Image Text:Use the Corporate Income Tax information above to answer this question.
A corporation has a taxable income of $2,564,306. At this income level, the federal income rate is
48%, the state tax rate is 22%, and the local tax rate is 12%. If each tax rate is applied to the the
total taxable income, the company would have to pay $2,564,306 0.48 in federal taxes. Luckily for
the corporation, the taxes paid are deducted as described above. How much is paid in federal taxes
if the customary deductions are taken into consideration?
2$
Round to the nearest dollar.
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